Leidos Inc. awarded $21.3M for ADP Systems Analysis Services by GSA
Contract Overview
Contract Amount: $21,289,394 ($21.3M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2003-12-18
End Date: 2009-02-26
Contract Duration: 1,897 days
Daily Burn Rate: $11.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ADP SYSTEMS ANALYSIS SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $21.3 million to LEIDOS, INC. for work described as: ADP SYSTEMS ANALYSIS SERVICES Key points: 1. Contract value appears reasonable for the scope of IT systems analysis. 2. Competition dynamics suggest a competitive bidding process for this delivery order. 3. Risk indicators are moderate, typical for IT services contracts of this duration. 4. Performance context is within the realm of standard IT support and analysis. 5. Sector positioning is within the IT services domain, supporting federal agencies. 6. The contract duration of nearly 5 years indicates a significant, ongoing need. 7. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight.
Value Assessment
Rating: good
The contract value of approximately $21.3 million over nearly 5 years for ADP Systems Analysis Services is within a reasonable range for IT consulting and analysis. Benchmarking against similar contracts for system design and integration services suggests that the overall award amount is competitive. The cost-plus-fixed-fee structure, while common, necessitates diligent monitoring to ensure costs remain aligned with the fixed fee and the value delivered. Without specific details on the deliverables, a precise value-for-money assessment is challenging, but the duration and scope suggest a substantial service requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The presence of two bidders suggests a degree of competition, which is generally positive for price discovery and ensuring a fair market price. However, the specifics of the competition, such as the number of proposals received and the evaluation criteria, are not detailed here. A competitive delivery order on an existing contract vehicle typically implies a streamlined process but still aims for best value.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source procurement. It ensures that the government is not overpaying for the services rendered.
Public Impact
Federal agencies requiring analysis and design services for their ADP systems benefit from improved IT infrastructure and operations. The services delivered likely contribute to the efficiency and effectiveness of government IT operations. The geographic impact is primarily within the United States, supporting federal agency needs. Workforce implications include employment for IT professionals, analysts, and project managers within Leidos and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
- The long duration of the contract may reduce flexibility to adopt newer technologies if not managed proactively.
- Dependence on a single contractor for critical system analysis could pose a risk if performance degrades.
Positive Signals
- Awarded as a competitive delivery order, indicating a structured procurement process.
- The contractor, Leidos, Inc., is a large and established entity in the federal IT services market.
- The contract duration suggests a sustained need and potentially a successful track record with the agency.
Sector Analysis
The IT services sector is a significant component of federal spending, encompassing a wide range of activities from software development to systems integration and cybersecurity. This contract falls under computer systems design services, a sub-sector focused on analyzing and designing information systems. The federal government is a major consumer of these services, aiming to modernize legacy systems, improve data management, and enhance operational efficiency. Comparable spending benchmarks in this area are vast, with billions allocated annually across various agencies for similar IT support and consulting.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Leidos, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Leidos actively engages small businesses for subcontracting opportunities, which is not detailed in the provided data.
Oversight & Accountability
Oversight for this contract would typically be managed by the General Services Administration (GSA) and the specific program office within the agency receiving the services. Mechanisms would include contract performance reviews, milestone tracking, and financial audits, especially given the cost-plus-fixed-fee structure. Transparency is generally maintained through contract databases like FPDS-NG, which provide award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- IT Systems Modernization
- Computer Systems Design Services
- ADP Services
- IT Consulting
- Federal IT Procurement
Risk Flags
- Cost-plus-fixed-fee pricing requires robust oversight.
- Long contract duration may limit adaptability to emerging technologies.
- Moderate competition (2 bidders) warrants careful price analysis.
Tags
it-services, computer-systems-design, general-services-administration, leidos-inc, competitive-delivery-order, cost-plus-fixed-fee, large-business, federal-acquisition-service, virginia, systems-analysis, it-consulting
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $21.3 million to LEIDOS, INC.. ADP SYSTEMS ANALYSIS SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $21.3 million.
What is the period of performance?
Start: 2003-12-18. End: 2009-02-26.
What specific types of ADP systems analysis were performed under this contract?
The provided data indicates the contract was for 'ADP SYSTEMS ANALYSIS SERVICES' under NAICS code 541512 (Computer Systems Design Services). This typically encompasses a range of activities including requirements gathering, system design, feasibility studies, and performance analysis for automated data processing systems. Specific tasks could have involved evaluating existing systems for efficiency, recommending upgrades or replacements, designing new system architectures, and ensuring compatibility with agency-wide IT infrastructure. The cost-plus-fixed-fee structure suggests a scope that might have evolved or required flexibility in addressing unforeseen technical challenges during the analysis and design phases.
How does the awarded amount compare to similar IT analysis contracts within the federal government?
The total award of approximately $21.3 million over a period of nearly 5 years (1897 days) averages to roughly $4.3 million per year. This figure is within the expected range for significant IT analysis and design services contracts awarded to large system integrators. Federal agencies frequently procure such services to support complex IT projects, system modernization efforts, and strategic planning. While a precise benchmark requires detailed comparison of scope, duration, and specific services, Leidos's award appears consistent with market rates for specialized IT consulting and systems engineering provided by major federal contractors.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?
The primary risks with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Leidos, revolve around cost control and contractor incentive. For the government, the risk is that the contractor may incur higher costs than anticipated, potentially eroding the value of the fixed fee if not managed diligently. Contractors might have less incentive to control costs aggressively since their fee is fixed. For the contractor, the risk lies in underestimating the costs required to perform the work, which could lead to reduced profit margins if actual costs exceed projections significantly. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks.
What was the contractor's track record prior to this award?
The provided data does not include specific details on Leidos, Inc.'s track record prior to this award, beyond its status as a large business. However, Leidos is a well-established and prominent government contractor with extensive experience in IT services, systems integration, and defense contracting. Their history typically involves numerous large-scale federal contracts across various agencies. For a delivery order of this nature, it's probable that Leidos was an incumbent or had existing contract vehicles with GSA, suggesting a baseline level of performance and capability relevant to the services required.
How does the competition level (2 bidders) impact the value for taxpayers?
Having two bidders for this competitive delivery order suggests a moderate level of competition. While more bidders generally lead to better price discovery and potentially lower costs for taxpayers, two bidders still provide a basis for comparison and negotiation. It indicates that at least two capable firms were interested and qualified to perform the work. This is preferable to a sole-source award, where taxpayers bear the full risk of potentially inflated pricing. The final price achieved would depend on the specific evaluation criteria and the government's negotiation strategy, but the competitive aspect is a positive signal for value.
What is the significance of the contract being a 'Delivery Order'?
The designation 'Delivery Order' (DO) signifies that this award was made under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means the underlying contract was previously competed, and this delivery order represents a specific task or quantity of work issued against that established framework. For taxpayers, this can mean faster procurement cycles and potentially pre-negotiated rates, but the initial competition for the IDIQ contract is critical for ensuring overall value. The fact that this specific DO was 'competitive' means that within the IDIQ framework, multiple vendors could bid on this particular order.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MCLEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $21,289,394
Exercised Options: $21,289,394
Current Obligation: $21,289,394
Parent Contract
Parent Award PIID: GS00T99ALD0210
IDV Type: GWAC
Timeline
Start Date: 2003-12-18
Current End Date: 2009-02-26
Potential End Date: 2009-02-26 00:00:00
Last Modified: 2011-03-24
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